Integrating Double Materiality: The Role of Corporate Sustainability Due Diligence Directive in Reshaping Corporate Governance in the EU
(2024) SMMM40 20241Department of Service Studies
- Abstract (Swedish)
- This master thesis explores the Corporate Sustainability Due Diligence Directive (CSDDD) within the
European Union, focusing on how it integrates the concept of double materiality into corporate
governance. The directive mandates that companies not only account for the financial impact of
sustainability on their operations but also consider their broader environmental and societal effect. This
study delves into the complexities of implementing this legal framework, examining the dual
dimensions of financial and impact materiality and their implications for corporate strategy and
reporting.
The analysis reveals that CSDDD aims to extend corporate accountability beyond traditional financial
metrics to encompass environmental... (More) - This master thesis explores the Corporate Sustainability Due Diligence Directive (CSDDD) within the
European Union, focusing on how it integrates the concept of double materiality into corporate
governance. The directive mandates that companies not only account for the financial impact of
sustainability on their operations but also consider their broader environmental and societal effect. This
study delves into the complexities of implementing this legal framework, examining the dual
dimensions of financial and impact materiality and their implications for corporate strategy and
reporting.
The analysis reveals that CSDDD aims to extend corporate accountability beyond traditional financial
metrics to encompass environmental integrity and social responsibility. This aligns with the EU’s
broader objectives of sustainable economic development and protection of human rights within
corporate operations and global value chains. This research employed a qualitative methodology,
focusing on document analysis to assess the directive’s requirements, its integration with corporate
governance, and the challenges and opportunities it presents.
The findings underscore the necessity for enhanced transparency, due diligence, and stakeholder
engagement in corporate practices. The thesis highlights how the CSDDD could reshape corporate
governance by embedding sustainability at the core of business operations and strategy. It concludes
by recommending further research to evaluate the directive’s effectiveness and to explore its
implementation across different corporate sectors and geographical contexts. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9168687
- author
- Lundström, Eva LU and Carlander, Ebba
- supervisor
- organization
- course
- SMMM40 20241
- year
- 2024
- type
- H2 - Master's Degree (Two Years)
- subject
- language
- English
- id
- 9168687
- date added to LUP
- 2024-06-26 12:05:49
- date last changed
- 2024-06-26 12:05:49
@misc{9168687,
abstract = {{This master thesis explores the Corporate Sustainability Due Diligence Directive (CSDDD) within the
European Union, focusing on how it integrates the concept of double materiality into corporate
governance. The directive mandates that companies not only account for the financial impact of
sustainability on their operations but also consider their broader environmental and societal effect. This
study delves into the complexities of implementing this legal framework, examining the dual
dimensions of financial and impact materiality and their implications for corporate strategy and
reporting.
The analysis reveals that CSDDD aims to extend corporate accountability beyond traditional financial
metrics to encompass environmental integrity and social responsibility. This aligns with the EU’s
broader objectives of sustainable economic development and protection of human rights within
corporate operations and global value chains. This research employed a qualitative methodology,
focusing on document analysis to assess the directive’s requirements, its integration with corporate
governance, and the challenges and opportunities it presents.
The findings underscore the necessity for enhanced transparency, due diligence, and stakeholder
engagement in corporate practices. The thesis highlights how the CSDDD could reshape corporate
governance by embedding sustainability at the core of business operations and strategy. It concludes
by recommending further research to evaluate the directive’s effectiveness and to explore its
implementation across different corporate sectors and geographical contexts.}},
author = {{Lundström, Eva and Carlander, Ebba}},
language = {{eng}},
note = {{Student Paper}},
title = {{Integrating Double Materiality: The Role of Corporate Sustainability Due Diligence Directive in Reshaping Corporate Governance in the EU}},
year = {{2024}},
}